Search By Topic: Limitation Law

1. (SC) 12-11-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 10 -- Suit for specific performance of agreement -- Evidence of attorney -- One of the purchasers and plaintiff in his suit for specific performance throughout present in the transaction held the Power of Attorney from the other plaintiffs – He was examined as PW-1 in each of the suits whether in his capacity as plaintiff or as Power of Attorney from other plaintiffs -- It was not necessary for each of the plaintiffs in separate suits to appear and prove the transaction -- Trial Court had examined this aspect and had found favour with the plaintiffs – Adverse inference drawn by the High Court for the reason that the plaintiffs did not enter the witness box to prove the Agreement to Sell, was completely misplaced.

(Para 28)

B. Specific Relief Act, 1963 (47 of 1963), Section 10 – Limitation Act, 1963 (36 of 1963), Article 54 -- Suit for specific performance of agreement – Limitation -- Agreement to Sell dated 30.08.1990 did not mention any date for the performance, nor did owner refused at any point of time and soon after the death of owner in December 1992, the plaintiffs having come to know of the mutation proceedings by her legal heirs, they proceeded to file the suit, after giving notice in May 1995, which was well within a period of three years -- Second part of Article 54 of the Schedule to the Limitation Act would be applicable once there was no date fixed for performance in the Agreement to Sell.

(Para 27, 30)

C. Agreement to sell – Possession with original title deed – Effect of -- A purchaser who has paid the full consideration and received the original title deeds from the seller would have taken possession under normal circumstances -- Any possession taken by any other party thereafter would be unauthorised and illegal.

(Para 32)

D. Violation of Injunction order – Alienation of the property in violation of the injunction order -- Sale deed would be a void document.

(Para 33)

2. (SC) 08-11-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 10, 16 -- Limitation Act, 1963 (36 of 1963), Article 54 – Suit for specific performance – Limitation -- Limitation prescribed by Article 54 sets in from the date when the petitioner received the reply refusing performance.

(Para 31)

B. Specific Relief Act, 1963 (47 of 1963), Section 10, 16(c) – Specific performance of agreement – Readiness and willingness – Purchaser paid a sum of Rs.11,30,00 as earnest money and paid Rs.13,00,000 on the same day by cheque and paid another Rs. 5,00,000 by Demand Draft -- If the petitioner was unwilling to perform the contract, he would not have paid nearly 75 percent of the sale consideration -- Petitioner with the payment of the additional sum above the earnest money, has proved his readiness and willingness to perform the contract -- Fit case for to exercise discretion to direct specific performance.

(Para 42)

C. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis panders -- Doctrine of lis pendens that Section 52 of the Transfer of Property Act encapsulates, bars the transfer of a suit property during the pendency of litigation -- The only exception to the principle is when it is transferred under the authority of the court and on terms imposed by it -- Where one of the parties to the suit transfers the suit property (or a part of it) to a third-party, the latter is bound by the result of the proceedings even if he did not have notice of the suit or proceeding.

(Para 47)

D. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Object of doctrine of lis pendens -- Purpose of lis pendens is to ensure that the process of the court is not subverted and rendered infructuous --  In the absence of the doctrine of lis pendens, a defendant could defeat the purpose of the suit by alienating the suit property.

(Para 49)

E. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis pendens – Review -- Pendency means -- Review proceedings were “instituted” within the period of limitation of thirty days –  Doctrine of lis pendens kicks in at the stage of “institution” and not at the stage when notice is issued by this Court -- Argument of the respondents that the doctrine of lis pendens does not apply because the petition for review was lying in the registry in a defective state cannot be accepted.

(Para 49)

4. (SC) 06-09-2024

A. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Limitation Act, 1963 (36 of 1963), Section 18, 19 -- Offer of possession made on 04.02.2014 -- ADA issued reminders to the appellant on 22.09.2014, 21.11.2014 and 17.01.2018 -- Additionally, ADA accepted the appellant's payment of Rs. 3,43,178/- on 20.06.2019 without any reservations -- NCDRC correctly applied Sections 18 and 19 of the Limitation Act, 1963, which extend the limitation period where part payments or acknowledgments are made -- Consequently, the cause of action continued to exist, and the filing of the complaint in July 2020 is within the limitation period.

(Para 16)

B. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Pecuniary jurisdiction -- Respondent ADA challenged the pecuniary jurisdiction of the NCDRC, contending that the total payment made by the appellant amounted to Rs. 59,97,178/-, which was less than Rs. 1 crore -- Claim made by the appellant also included compensation for mental agony, harassment, and loss of income, which brought the total claim well above Rs. 1 crore -- In consumer disputes, the value of the claim is determined not just by the amount deposited but by the aggregate relief sought, which includes compensation and other claims -- NCDRC rightly held that it had the requisite pecuniary jurisdiction to entertain the complaint, and this Court affirms that finding.

(Para 18, 19)

C. Consumer Protection Act, 1986 (68 of 1986), Section 21 -- Real Estate (Regulation and Development) Act, 2016 (16 of 2016), Section 19(10) -- Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010 (U.P. Act No. 16 of 2010), Section 4(5) -- Offer of possession -- Completion certificate -- Firefighting clearance certificate – Requirement of -- A developer must obtain these certificates before offering possession -- Possession offered without the requisite completion certificate is illegal, and a purchaser cannot be compelled to take possession in such circumstances -- ADA’s failure to provide the required certificates justifies the appellant’s refusal to take possession --  Entire amount deposited by the appellant ordered to be refunded with interest 9% per annum from the date of complaint till the date of refund, the ADA is directed to pay an additional amount of Rs. 15,00,000/- (Fifteen Lakhs only) to the appellant.

(Para 20-23)

7. (P&H HC) 02-07-2024

A. Specific Relief Act, 1963 (47 of 1963), Section 9 -- Punjab Tenancy Act, 1887 (XVI of 1887), Section 51 – Civil suit for possession of agricultural land -- Ejectment of tenant -- Denying title of landlord – Effect of – Jurisdiction of civil Court -- If defendants denied the title of the plaintiffs in the written statement by taking a specific plea to the effect, that will be sufficient to hold that they had denounced the title of the plaintiff -- Civil Court will have the jurisdiction to entertain the suit for possession.

(Para 10)

B. Specific Relief Act, 1963 (47 of 1963), Section 9 -- Limitation Act, 1963 (36 of 1963), Section 27 -- Punjab Tenancy Act, 1887 (XVI of 1887), Section 51 – Tenancy of agricultural land – Adverse possession – Plea of -- Effect of – Finding beyond pleadings – Permissibility of -- At no point of time, defendants ever claimed to be tenants on the suit land -- Their consistent stand taken in the written statement is that they are in possession of the suit land and had perfected their title by way of adverse possession -- Their plea of adverse possession has not been found as correct -- The First Appellate Court on its own, made out a new case for the defendants by holding them to be tenants on the suit land -- The First Appellate Court could not travel beyond the pleadings of the parties -- Even the evidence, led beyond the pleadings of the parties, could not be appreciated in that direction -- Suit decreed.

(Para 11, 13)

22. (J&K&L HC) 22-12-2023

A. Constitution of India, Article 300A -- Land acquisition case – Compensation – Limitation -- Whether taking over of possession of the land way back in the year 1969 disentitles the petitioners from claiming compensation – Held, no amount of delay can come in the way of the petitioners to approach this Court for enforcement of their constitutional right to property – Respondents are liable to pay compensation to the petitioners in terms of the award already passed by the Collector – Writ petition allowed.

(Para 14-23)

B. Constitution of India, Article 31, 300A, 370 – Right to property – Delay in claiming compensation -- Right to property was a fundamental right in the erstwhile State of Jammu and Kashmir prior to abrogation of Article 370 of the Constitution of India, as such, it cannot be stated that the petitioners have waived their right to property – At present, the right to property may not be a fundamental right, but it is certainly a Constitutional right guaranteed under Article 300A of the Constitution of India, which provides that no person can be deprived of his property save by authority of law -- Even if the right to property has ceased to be a fundamental right, still then it continues to be a legal and constitutional right and no person can be deprived of his property except by authority of law -- Denial of this right to a person constitutes a continuing cause of action and, therefore, no amount of delay and laches would extinguish the right to property of a person.

(Para 18)

C. Limitation Act, 1963 (36 of 1963), Section 27 -- Adverse possession by State – Permissibility of -- State cannot claim adverse possession in respect of the property belonging to private persons -- Therefore, it does not lie in the mouth of the respondents to say that the property in question has vested in them because of their long possession over the same.

(Para 19)

36. (SC) 18-05-2023

A. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 11(6) – Limitation Act, 1963 (36 of 1963), Article 137 -- Appointment of Arbitrator -- Limitation -- Cause of action -- If an infringement of a right happens at a particular time, the whole cause of action will be said to have arisen then and there -- In such a case, it is not open to a party to sit tight and not to file an application for settlement of dispute of his right, which had been infringed, within the time provided by the Limitation Act, and, allow his right to be extinguished by lapse of time, and thereafter, to wait for another cause of action and then file an application u/s 11 of the Act 1996 -- In such a case, such an application would mean an application for revival of a right, which had long been extinguished under the Act 1963 and is, therefore, dead for all purposes -- Such proceedings would not be maintainable and would obviously be met by the plea of limitation under Article 137 of the Act 1963.

(Para 58)

B. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 11(6) – Limitation Act, 1963 (36 of 1963), Article 137 -- Appointment of Arbitrator – Limitation -- Cause of action – Extension of limitation -- Disputes arose between the parties in relation to the wrongful encashment of bank guarantee vide letter dated 16.02.2016 and for wrongful imposition of liquidated damages -- Respondent on 26.09.2016, deducted the amount towards recovery of the liquidated damages -- Requisite amount was credited into the Government account -- This was the end of the matter -- To say that even thereafter, the petitioner kept negotiating with the respondent in anticipation of some amicable settlement would not save the period of limitation -- When the bank guarantee came to be encashed in the year 2016 and the requisite amount stood transferred to the Government account that was the end of the matter -- This “Breaking Point” should be treated as the date at which the cause of action arose for the purpose of limitation.

(Para 59-62)

C. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 11(6) – Limitation Act, 1963 (36 of 1963), Article 137 -- Appointment of Arbitrator – Limitation -- Cause of action – Negotiation will not postpone cause of action -- Negotiations may continue even for a period of ten years or twenty years after the cause of action had arisen -- Mere negotiations will not postpone the “cause of action” for the purpose of limitation -- The Legislature has prescribed a limit of three years for the enforcement of a claim and this statutory time period cannot be defeated on the ground that the parties were negotiating.

(Para 63)

50. (SC) 31-01-2023

A. Code of Civil Procedure, 1908 (V of 1908), Section 149 – Court Fees Act, 1870 (7 of 1870), Section 4 – Limitation Act, 1963 (36 of 1963), Section 5 -- Delay in appeal – Condonation of delay – Insufficient funds for court fee – Ground of -- Application for condonation of delay dismissed as insufficient funds could not have been a sufficient ground for condonation of delay -- It would have been entirely a different matter had the appellant filed an appeal in terms of Section 149 CPC and thereafter removed the defects by paying deficit court fees.

(Para 9)

B. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Himachal Pradesh Tenancy and Land Reforms Act, 1972 (8 of 1974), Section 2(4), 118 – Sale of agricultural land in Himachal Pradesh -- Private company is not an ‘agriculturist’ -- Approval was not given by the State Government and then the Company assigned his right to the plaintiff who thereafter filed the suit for specific performance -- No specific clause in the “Agreement to Sell”, which says that in case the purchaser fails to obtain required permission from the State Government, it could assign its rights to an agriculturist of Himachal Pradesh and the seller therefore would not have any objection in executing the Sale deed in favour of such an assignee -- No question of granting a decree of Specific Performance in favour of the plaintiff – Dismissal of suit upheld.

(Para 11-16)

C. Himachal Pradesh Tenancy and Land Reforms Act, 1972 (8 of 1974), Section 118 -- Sale of agricultural land in Himachal Pradesh -- Whole purpose of Section 118 of the 1972 Act is to protect agriculturists with small holdings -- Land in Himachal Pradesh cannot be transferred to a non-agriculturist, and this is with a purpose to save the small agricultural holding of poor persons and also to check the rampant conversion of agricultural land for non-agricultural purposes.

(Para 17)